Insurance Documentation and Policies Quiz

The insurance policy is the official document that serves as proof of coverage.

Deductible is the out-of-pocket amount the insured must pay before the insurance coverage kicks in.

Policyholder is the individual or entity that owns and holds the rights to an insurance policy.

Underinsurance occurs when the insured value of property is less than its actual value, leading to potential coverage gaps.

Liability Insurance provides coverage for losses or damages caused by the insured to others.

Premium in insurance refers to the amount paid by the insured for the coverage provided by the insurance policy.

Subrogation is the insurer's right to seek reimbursement from a third party responsible for the loss.

Endorsement is used to make changes or additions to the terms and coverage of an insurance policy.

Underwriting is the evaluation of risks to set appropriate premiums in insurance.

Coinsurance refers to the percentage of covered expenses that the insured is responsible for paying.

Indemnity in insurance is the provision of compensation to the insured for a covered loss or damage.

Policy Limit is the maximum amount that an insurance company will pay for a covered loss as specified in the policy.

Actual Cash Value (ACV) in property insurance is the replacement cost of an item minus its depreciation.

Reinsurance is the practice of transferring a portion of the insurer's risk to another company to reduce liability.

Moral Hazard in insurance refers to the increased risk associated with a person's character or lifestyle.